Updated almost 7 years ago on . Most recent reply
First SFH straight rental.
Investment Info:
Single-family residence buy & hold investment in Jacksonville.
Purchase price: $22,000
Cash invested: $5,000
SFH purchased through seller financing with 2k down 5.25% and amortized over 5 years. Financed rehab with 3 year private loan. Doesn't cashflow much now but total cash invested is 5k, it will cashflow decently in 3 years and I will own outright in 5. First rental property that I did not also live in myself at some point.
What made you interested in investing in this type of deal?
The ultimate cashflow and low initial capital investment.
How did you find this deal and how did you negotiate it?
Craigslist and patiently waited for seller to decline larger investors lower offers.
How did you finance this deal?
Seller financing and private loan for the rehab.
How did you add value to the deal?
New roof, flooring, countertops, and paint throughout
What was the outcome?
Own it currently with no plan to sell anytime soon.
Lessons learned? Challenges?
I paid too much for the rehab. Contractors are just as much a piece of the puzzle as the initial purchase.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I did this deal for myself to minimize closing costs on the seller's side. If you are comfortable with contracts and paperwork this may be a tool you can use if it makes sense. Otherwise I use a licensed Florida agent to make it easier on myself especially since I live 700 miles away from my preferred area.